The Missisquoi Valley School District #89 board reviewed the first draft of its fiscal year 2027 budget, which Finance Director Laura McAllister said represents a $1.6 million increase over the previous year and reflects negotiated salary increases and higher benefit costs.

"Draft 1 is an increase of 1,600,000," McAllister said while reviewing the workbook the board received. She said the draft allocates approximately $460,000 for benefit cost increases and about $1.1 million for salary increases and includes placeholders for nonunion increases and ongoing negotiations with support staff.

Board members discussed technical accounting changes McAllister made to align support-staff charges with special-education allocations (an 80/20 split between special education and general education) that make some line items look larger while leaving total dollars consistent for now. McAllister also noted several current vacancies and an athletic-trainer contract that remains in place while the position is vacant.

Class-size mandate and timeline: Superintendent Julie Reginald reminded members that Act 73 includes class-size expectations that the district must meet and said the district is "solidly within all of the expectations" after small scheduling tweaks; she called those mandates a "mandate" and noted that failing to meet the rule for three years could trigger state sanctions.

Other pressures: the board discussed inflationary pressures on contracted services, technology, copier leases and transportation contracts that may impact future drafts. The finance team said it will continue staffing reviews, consider attrition and present a revised draft at the next finance committee meeting and in subsequent board meetings.

What happens next: staff will return with Draft 2 reflecting staffing decisions, firmed-up insurance rates, negotiated contract results and updated contracted-service estimates ahead of the budget timeline and public hearings.